DOE Final Rule Transformer Efficiency

Scope of Final Rule Liquid-filled distribution transformers HV ratings through 35 kV LV ratings 600 Volts and below Single-phase capacities 10-833 kVA Three-phase capacities 15-2500 kVA Dry-type medium-voltage transformer Approximately same ratings as for liquid-filled

Changes: NOPR vs Final Rule 10-100 kVA single-phase mandated efficiency slightly less thanTSL5 (was TSL2) 167 kVA single-phase mandated efficiency at TSL4 (was TSL2) 250-833 kVA single phase mandated efficiency between TSL2 and TSL3 (was TSL2)

Changes: NOPR vs Final Rule 15-300 kVA three phase, efficiency levels are TSL2 (unchanged) 500-2500 kVA three phase mandated efficiency levels at TSL3 or slightly above TSL3

Liquid-Filled Efficiency Levels (DOE vs NEMA) Single Phase Three Phase KVA DOE NEMA TP-1 15 98.36 98.1 10 98.62 98.4 30 98.76 98.6 45 25 98.91 98.7 75 37.5 99.01 98.8 112.5 50 99.08 98.9 150 99.17 99.0 225 100 99.23 300 167 99.25 99.1 500 250 99.32 99.2 750 333 99.36 1000 99.42 99.3 1500 667 99.46 99.4 2000 833 99.49 2500

Liquid-Filled Efficiency Levels Single Phase Three Phase KVA Efficiency TSL 15 98.36 =TSL2 10 98.62 <TSL5 30 98.76 45 25 98.91 75 37.5 99.01 112.5 50 99.08 150 99.17 225 100 99.23 300 167 99.25 =TSL4 500 <TSL2 250 99.32 <TSL3 750 >TSL3 333 99.36 1000 =TSL3 99.42 1500 667 99.46 2000 833 99.49 2500

Major Concerns—Raw Materials Most distribution transformers sold today do not meet DOE mandate. Additional demand on scarce resources…will impact transformer cost and availability Magnet wire – 55% increased consumption Strip aluminum – 55% increased consumption Transformer oil – 3% reduced consumption Core steel – 25% increased consumption (and 20% decreased core steel vendor capacity)

Cost/Efficiency Relationship 100% Transformer Efficiency

Major Concerns—Core Steel Core Type Thickness (Mils) Efficiency Cost Amorphous 1.0 Most Efficient Costly M2 7.0 M3 9.0 M4 11.0 M5 12.0 M6 14.0 Least

Core Grade Distribution, Non-DOE Designs M4 M3 M5 Production Volume M2 M6 Core Steel Grades

Major Concerns—Core Steel DOE mandate will… force a shift to M2, M3 and M4 grades will eliminate usage of M5 and M6 grades for liquid-filled designs

Major Concerns—Core Steel Core steel in global short supply Domestic suppliers plan no significant capacity increases Core steel suppliers unable to supply enough M2 and M3 steel Globally, few core steel suppliers offer M2 and M3 grades Dry-type transformer producers will consume M5 and M6 grades Rare and exotic core materials may be required (amorphous metal, laser scribed, high-B, etc.)

Transformer Cost Transformer prices will increase an average 15-30% for aluminum primary designs (depending on product line) Transformer prices will increase an average 25-40% for non optimum designs (depending on product line) Increases for individual utilities will vary widely, based on present efficiency levels

Other Issues How will increased pole-type transformer size and weight of 20-25% impact utility retrofits and service reliability? How will manufacturers handle redesign requirements (most transformer designs do not meet the DOE mandate)? Will waivers be available for emergencies?

Howard Action Plan Improve process capacities to compensate for increased size and weight Increase core winding, annealing and lacing capacities Increase coil winding capacities Increase coil oven capacities Increase core/coil oven capacities Increase crane and conveyor capacities Expand Laurel Facility size by 525,000 ft2 Increase unit production capacities Small pole-type from 3,000 to 6,000 units per week Padmounted capacity by 15% Modify factory test stations

Buy the Lowest TOC That Meets DOE DESIGN 1 Equal Efficiency Lower TOC DESIGN 2 Equal Efficiency Higher TOC TOC TOC Eff Eff Cond Cond Core Core

Implementation Schedule Date Design / Manufacturing Status Jan 1, 2008 Re-design process begins Apr 1, 2009 Start building DOE designs (with existing non-DOE) Jun 30, 2009 Re-design process completed Sep 1, 2009 New production started is DOE compliant Sep 30, 2009 All production completed is DOE compliant Jan 1, 2010 DOE mandated compliance

DOE Contact Antonio Bousa: Project Manager for Distribution Transformer Energy Conservation Standards, (202) 586-4563 DOE Web: http://www.eere.energy.gov/buildings/appliance_standards/commercial/distribution_transformers.html Howard Web: www.howard.com